Theracycle CEO On Finding A Niche Market With Parkinson’s Patients

Some people get into their line of work “by accident,” but in Peter Blumenthal’s case, he really did suffer a life-threatening accident that eventually got him to buy Theracycle. He spoke with Chief Executive about it and how he found the company’s niche market.
Peter Blumenthal, CEO of Theracycle
Peter Blumenthal, CEO of Theracycle

Sometimes people will tell you they got into their line of work “by accident,” but in Peter Blumenthal’s case, he really did end up as the CEO of Theracycle by accident.

Blumenthal had recently sold his New England-based chain of frame stores, the Frame King, and decided to train for an iron man triathlon. While training, he got hit by a car and broke his neck. “The chance of me surviving was about 5 percent,” recalled Blumenthal. Not only did he survive, but he got use of his hands and legs again and eventually was able to re-train for triathlons.

During recovery, he used a product called Theracycle religiously for six months, an in-home motorized physical therapy bike. Blumenthal credits the bike for getting him back to where he was before the accident. Thus, he pulled a Victor Kiam, who famously bought Remington’s because he liked using the razors. He bought Theracycle because he had loved using it during recovery.

But it wasn’t a gravy train from the get-go. Blumenthal says there was a 10-year period where he couldn’t identify a specific market for the Theracycle. Blumenthal, who had a background in retail with the Frame King, had to learn a lesson about buying what you (don’t) know.

“You should always do something that you know, rather than stuff that you don’t know. So first of all, I bought a manufacturing company, when I knew nothing about manufacturing. Second of all, it was a medical device, I knew nothing about the device industry. And third and probably most importantly, I knew I had been successful, and I had made enough money that I didn’t have to worry about it anymore. So I no longer had that fire in the belly, that I think that we need to succeed.”

One lucky call

For a decade, Blumenthal struggled with getting the Theracycle off the ground and dabbled in other businesses in the meantime. It wasn’t until he received a fortuitous call that changed the direction of the company.

“I got a call from a neuro researcher at the Cleveland Clinic…he was doing a research project on fast-paced exercise on a bicycle to see how it would benefit people with Parkinson’s disease,” says Blumenthal. The researcher was looking for someone who makes a motorized bicycle and since in general, it’s a counterintuitive to a bicycle’s existence, Theracycle was one of the few products in the market.

Theracycle worked with the Cleveland Clinic research team, led by Jay Alberts, PhD, to provide the bikes. Alberts, who works in Cleveland Clinic’s Department of Biomedical Engineering on Parkinson’s research, has become a stark advocate for forced exercise, along with a few other notable researchers.  In turn, this has helped Blumenthal find the product’s niche.

“If Dr. Alberts had never called me, I’m not sure what would have happened. I’m not sure if the product would have been successful,” says Blumenthal.

Building awareness

Blumenthal says the biggest challenge the company faces is awareness with Parkinson’s patients and their families. People are skeptical that exercise through a motorized bike would be as effective than deep brain stimulation surgery or medication. There is growing evidence, he says, that vigorous exercise can slow Parkinson’s, although to what degree is still up for debate.

But it’s not just a matter of educating patients though, Blumenthal says. “The big thing is educating the caregivers, both [physical therapists] and occupational therapists and also doctors, that there are other options other than to suggest medication.”

Another challenge is the fact that Medicare considers Theracycle an “exercise company,” not a medical device company. As such, it doesn’t cover its use. Blumenthal says that if it ever happened, he predicts the company would take off like a rocket ship. For now, he says, “we’re happy just to build it right now with only one customer at a time.”

Down the line, Blumenthal sees a wider market beyond patients with Parkinson’s disease (95% of its sales are for people who have the disease). He claims the motorized exercise bike will be able to help people who have had strokes, have diabetes, and suffer from arthritis as well.

Stark-raving fans

It’s weird to cultivate a community where the buyers of a product will never be repeat customers, but that’s exactly what Theracycle is trying to do. “We have people who consider to be raving fans,” Blumenthal says.

Those are the people that will help the company take the next step in its journey. To other CEOs, Blumenthal says you must hasten your brand.

“Do everything that you can do to make sure that people when they hear the name of your product, they have a positive view of it. And we’re doing this by everyone of our customers who has a Theracycle, we feel is basically an advocate and an ambassador for what our product does.”

Read more: Making Innovation A Habit In Your Company


MORE LIKE THIS

  • Get the CEO Briefing

    Sign up today to get weekly access to the latest issues affecting CEOs in every industry
  • upcoming events

    Roundtable

    Strategic Planning Workshop

    1:00 - 5:00 pm

    Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process

    Executives expressed frustration with their current strategic planning process. Issues include:

    1. Lack of systematic approach (70%)
    2. Laundry lists without prioritization (68%)
    3. Decisions based on personalities rather than facts and information (65%)

     

    Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns.  They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning.  Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process.  This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented.  If you are ready for a Strategic Planning tune-up, select this workshop in your registration form.  The additional fee of $695 will be added to your total.

    To sign up, select this option in your registration form. Additional fee of $695 will be added to your total.

    New York, NY: ​​​Chief Executive's Corporate Citizenship Awards 2017

    Women in Leadership Seminar and Peer Discussion

    2:00 - 5:00 pm

    Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations. 

    Limited space available.

    To sign up, select this option in your registration form. Additional fee of $495 will be added to your total.

    Golf Outing

    10:30 - 5:00 pm
    General’s Retreat at Hermitage Golf Course
    Sponsored by UBS

    General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.

    The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.

    To sign up, select this option in your registration form. Additional fee of $295 will be added to your total.